Funds at KU arm hit $1B

Endowment Association assets move university into a higher league

Kansas University has joined the billion-dollar club.

KU Endowment Association on Friday reported the value of the foundation’s endowed funds at $1.05 billion, topping the billion-dollar mark for the first time.

“It has a real impact on the university,” KU Endowment President Dale Seuferling said of the milestone. “Every incremental step provides an assurance that there’s that permanent source of support that will always be available for KU.”

Total assets – endowed funds and real estate holdings – climbed to more than $1.25 billion, up from $1.14 billion in the last fiscal year.

The growth enables KU to compare itself to a higher league of institutions, said Jeff Davis, senior vice president for finance.

But it also forces the endowment, KU’s private fundraising foundation, to examine how it manages an increasingly complex portfolio, Davis said.

“We might add staff,” he said. “We might deepen relationships with existing consulting firms we work with.”

The National Association of College and University Business Officers (NACUBO) annually ranks institutions for the size of their endowments. Last year, KU ranked 57th among 746 institutions. New rankings won’t be available until January.

Davis said KU ranks either fourth or fifth in the Big 12, behind Texas, Texas A&M, Baylor and running neck and neck with Nebraska.

The endowment’s long-term investments gained 13.6 percent, compared with a 13.7 percent gain in 2005 and a 20.3 percent gain in 2004.

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Endowment funds pay for building construction and renovations, scholarships, faculty support, university travel and other costs.

Total support for KU from the endowment dropped from $103.9 million last year to $99 million.

Seuferling pointed to fewer expenses for construction and furnishings for the decrease.

“The previous year we paid bills on construction projects for $42 million,” Seuferling said. “This year it was $33 million.”

Gift revenue decreased from $86.4 million in 2005 to $84.9 million.

Seuferling said though contributions and pledges are up, the amount from bequests dropped, likely because not as many KU supporters died during the year.